Internet Economics כלכלת האינטרנט. Teacher. Dr. Liad Blumrosen ד"ר ליעד בלומרוזן Office: 5205 Email: firstname.lastname@example.org Office hours: Mondays, 14:30-15:30 You are encouraged to come! (Please drop me a line if you plan to come)
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Note: theoretical course, based and demonstrated by real world internet application.
Some examples in the next slides.
The Internet was, and still is, built by humans. Its main applications too.Economists as engineers.
In most of the course, we will try to understand the logic behind the design of Internet systems
Let’s start with a little auction….
שיטה שניה:"שלם את הבא אחריך"ההצעה הגבוהה ביותר זוכה, והתשלום הוא ההצעה השניה הכי גבוהה.
אם המכירה תהיה "שלם את הצעתך", הצעתי היא 4.31 שקלים
אם המכירה תהיה "שלם את הבא אחריך" הצעתי היא 5.11 שלקים
Bid = 20
Bid = 8
Bid = 12
Bid = 15
Revenue in first price auction
Revenue in second prize auction
Intuition: in first price auction, people bid less then they are actually willing to pay.
Real (“organic”) search result
Ads: “sponsored search”
US high school dating network: who have you been in romantic touch with, in the past 18 months
High school friendship network. Kids from different races have different colors.
A spread of an epidemic disease tuberculosis.
Representation: graph (network).
Friendship (or edge in the graph):A played with B in the same movie
“Kevin Bacon number” – distance (shortest path) to Kevin Bacon. The Oracle of Bacon.
Paul Erdös – one of the greatest mathematicians of our times.
Friendship/edge :Awrote a scientific paper with B.
Bacon number, Erdösnumber – examples for “small world phenomena”/”six degrees of separation”.
What is the probability that Amos Oz will win the Nobel Prize in literature next year?
How can we estimate it? Use the “Wisdom of the Crowds”.
Many design issues…